Singapore private market exchange ADDX has raised US$58 million in a funding round that drew new investors from Thailand and the US, and plans to use the money to help finance expansion into Asian markets.
ADDX has now raised around $120 million since 2019. The new funding will allow it to further improve its private market exchange platform, offer more products, and expand into new markets, the company says in a statement.
It raised the money from new investors including SET Venture Holding, a unit of the Stock Exchange of Thailand, Krungsri Finnovate, the corporate venture capital arm of Thailand’s Krungsri Bank, Singapore’s United Overseas Bank, and US alternative investment management firm Hamilton Lane.
Existing investors in the company include Singapore Exchange, Tokai Tokyo Financial Holdings, and Korea’s Hanwha Asset Management.
ADDX uses blockchain and smart contract technology to tokenise and fractionalise private market opportunities such as pre-initial public offering equity, private equity funds, hedge funds, and bonds.
Tokenisation refers to the digitisation of an asset using blockchain and smart contract technology, reducing the need for intermediaries and manual work and making it cost effective for issuers and exchange operators.
Accredited individual investors on ADDX can now access private market funds for as low as $10,000 versus up to $1 million previously.
Thailand is one of the key markets that ADDX is focusing, Chief Executive Officer Choo Oi-Yee tells Asia Asset Management. The others are China and Japan.
According to Choo, the Thai wealth market is “deep and mature, with many opportunities for being able to bear the efficiencies of blockchain technology on investor pain points such as high minimum buy-ins and long investment tenures”.
“Working with our Thai partners, we look forward to connecting Thai wealth with global investment opportunities, as well as global wealth with Thai opportunities,” she says.
There are now 30 funds and investment products listed on ADDX.